For every business, customers are as important as oxygen is for living beings. However, no business has the power to simply guess what is going on in the customer’s mind. To increase the return on investment, a business must utilize customer data analysis techniques. 

The necessity of Customer Data Analysis from an ROI perspective

Every customer interaction should be understood in the terms of quantifiers or separately derived indices. Still, a business may have the data for the shop cart abandonment or email open rate. However, these measurements alone are not sufficient to understand your customers. 

To systematically optimize the customer journey, the companies need a more holistic approach for this analysis. This approach improves the customer satisfaction rate. Thus, a business can convert more customers into brand loyalists for a bit longer. 

And the company’s ROI increases with the subsequent increase in sales. 

Relationship between Customer Data Analysis and Profitability

Good quality data is a prerequisite for realistic analysis. A business may focus on the following metrics for conducting a reliable customer analysis. Then, use the obtained data to increase the profitability or the “Return on Investment” of your enterprise. 

1 | Customers’ Purchase History hints at Recurring Sales

Purchase history helps in developing a baseline for the purchasing power variations across the customer base. 

Later, a business can revise the personalized marketing efforts keeping in purview the variance in receipts. For example, let’s say that a customer has made three transactions. And the average amount of these sales is P. If the maximum receipt amount varies only a little, this customer is not going to make a bigger purchase anytime soon. 

By focusing on the high-return customers who are comfortable spending more for advanced features, quality and status, a business can improve its revenue, thereby its ROI shows improvement. 

2 | Brand Interactions highlight the Warm Leads

User engagement is observed in the case of digital creatives and feedback from fill-up rates. Other avenues for studying the same might be live streams, webinars, and in-person offline events. 

The working principle related to this aspect of customer data analytics is quite simple. If a person takes the time to actively engage with business events, that person is more likely to be your long-term client. In the B2B context, this person might have the decision-making authority for a potential client company. 

Remember, your enterprise needs a more predictable inflow to stay profitable. And the customers that are willing to pay attention to your webinars or physical events are often the loyal ones. So, their repeat transactions help you stay less volatile. 

As such, the investor sentiments stay positive toward the business. No wise person would commit their investable capital to a highly volatile entity. Thus, measure the user engagement for predicting the financial stability for each business quarter. 

3 | Personalization Data increases the Probability of Sales

Web activity related to the customer gives us the beacon points for personalizing the marketing tactics for the customer’s needs or wants. 

Demographic details enable the business to understand how factors such as age, geolocation, and cultural features affect the purchasing decisions. 

Combine these two details to access the magic of personalized marketing. When a business combines the web activity data with more personal details such as age, location, or culture; it is more aware of the factors responsible for the success and failure of a marketing tactic. 

If a business is selling PhD-level books to High school students, will it ever improve its return on investment? Forget ROI, will it reach the breakeven point in this century? 

Of course, never! 

Only through a proper customer data analytics solution, the companies can achieve higher returns for their marketing and production efforts. 


The data points discussed when studied together, assist the business to predict the best time of the year for a specific marketing strategy. When time, moods, and personalized targeting work in sync, the business observes an increased turnover. 

Your ROI is not going to improve if you stay uninformed about customer analytics. 

Thus, to unlock the complete value of the customer data, contact us today. SG Analytics is the leading consulting service in the customer data analytics space.